Published
Apr 2, 2020
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H&M to pay suppliers in full for orders fulfilled, but halts new orders

Published
Apr 2, 2020

Fashion retailers globally are starting to cancel orders for garments they have no hope of selling and also to delay payment for orders already delivered.


H&M



But Swedish giant H&M Group has told suppliers in Bangladesh and other manufacturing countries that they will receive payment for the orders they have already fulfilled or started. 

Several reports quoted H&M saying “we will stand by our commitments to our garment manufacturing suppliers by taking delivery of the already produced garments as well as goods in production”. But the company is pausing any new orders for now, as is most of the industry.

A humanitarian crisis is brewing in Bangladesh as the country’s garment sector reels from the impact of store closures globally and the cancelled orders that have been the result.

Sources within Bangladesh praised the decision to pay up, saying that others had cancelled orders without payment.

The company has also reportedly said it will pay for the goods ordered under the original terms agreed. Again, this contrasts with some other retailers that have applied retrospective discounts with no negotiation. 

H&M is believed to source around $4 billion worth of clothing and textile products annually from more than 230 manufacturers in Bangladesh.

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